The Department of Labor and Employment (DOLE) has reminded private employers to observe the mandated wages on Labor Day, May 1, a regular holiday.
Labor Secretary Bienvenido Laguesma said employees in the private sector who would report for duty on May 1, are entitled to full pay plus 200 percent of their basic wages.
The DOLE released the pay rules through an advisory signed by Laguesma.
Under President Ferdinand Marcos Jr.’s Proclamation No. 727, Labor Day is declared a regular holiday, which means all non-essential work and classes are suspended on that date.
According to DOLE, if an employee does not work, employers are mandated to pay 100 percent of their employee’s wage for that day, “provided that the employee reports to work or is on leave of absence with pay on the day immediately preceding the regular holiday.”
“Where the day preceding the regular holiday is a non-working day in the establishment or the scheduled rest day of the employee, he or she shall be entitled to holiday pay if the employee reports to work or is on leave of absence with pay on the day immediately preceding the non-working day or rest day,” DOLE said.
“For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30 percent of his/her hourly rate on said day,” Bello said in his advisory.
Meanwhile, employees who work on a regular holiday that also falls on his or her rest day should be paid an additional 30% of his or her “basic wage of 200%.”
Those working overtime are then to be paid an additional 30 percent of their hourly rate (calculated as hourly rate x 200 percent x 130 percent x number of hours worked).
